Those implied layoffs Fab CEO Jason Goldberg hinted at in an internal memo a few days ago have happened: The e-commerce company laid off 101 employees today, including 84 from the New York headquarters, according to Goldberg’s latest blog post.
“…we’ve made the tough but correct decision to eliminate positions that are either legacies of our former flash-sales business model or are part of current processes that can be managed with innovative technology and fewer people.”
The customer service, merchandise planning, and tech teams were not affected by the layoffs, which brought the company down to 440 employees and mainly targeted “legacy” positions held by employees who worked on Fab’s flash-sale business, a strategy Goldberg has openly said the company is moving away from.
Goldberg’s blog post frames the layoffs as a necessary cost on the path toward achieving profitability in 2014. The company has raised more than $300 million to date, so it’s understandable Goldberg and his executive team are anxious to show investors their capital is paying off.